Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

• A.The contractor's certification that it has not incurred any waste or inefficiencies.
• B.A walk-through of the contractor's manufacturing and development facilities.
• C.An examination of the nature of contract expenses incurred.
• D.A comparison of contract expenses with those of similar projects.

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Which of the following actions by the internal audit activity provides strong evidence that it is organizationally independent?

• A.It maintains direct interactions with the audit committee or board.
• B.It requires all internal audit staff to sign annual non-disclosure and potential conflict of interest statements.
• C.It reviews engagement results for evidence of undue influence before releasing the final report.
• D.It releases an approved internal audit charter stating that the internal audit activity is independent.

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A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements.
According to IIA guidance, which of the following actions would best help the CAE reach this objective?

• A.Assign one experienced manager to better coordinate staff training and development activities.
• B.Engage a consultant to benchmark the IAA's training program against its peers.
• C.Require that all staff obtain a minimum of two relevant audit certifications.
• D.Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

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An internal auditor is assessing the risk of employees falsifying reimbursement requests for business- related meals or travel. Which of the following procedures would the internal auditor most likely perform first?

• A.Review the supplemental documentation provided for a sample of reimbursement requests.
• B.Determine whether or not the payroll/accounting department has been subject to regular review.
• C.Establish a flowchart of the payroll/accounting functions that include any controls currently in place.
• D.Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.

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According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)?

• A.A competent employee of an independent external organization that provides cosourcing services to the IAA.
• B.An employee in the parent organization who has not had any previous contact with the IAA.
• C.A former employee knowledgeable of the IAA who resigned three years earlier from the organization.
• D.An employee in an affiliated organization who has never worked directly with the IAA.

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